Tax preparers and experts say ‘missing’ stimulus checks are nothing more than miscommunication
By: Emma Wheeler | WCTV Eyewitness News
April 16, 2020
TALLAHASSEE, Fla. (WCTV) – Dozens of people on Wednesday
in the hands of a Tallahassee tax office.
These upset people say their checks were deposited into a tax preparer account.
On Thursday, the owner of Galaxy Tax Services speaks.
Stories like these are starting to pop up across the country. Galaxy Tax is now giving a snapshot of the situation on Wednesday, saying it was a misunderstanding and tax preparers do not have access to stimulus payments.
“You don’t have to go to your tax agency, to your tax preparer to give them a hard time because they don’t have access to your stimulus checks,” said Frenel Cariani of Galaxy Tax Service.
He adds that when clients use a cash advance, tax preparers go through a third-party bank to distribute their refunds faster.
These banks then create a one-time account which is deleted once the funds are received.
“This account number could be the last three of your social number and another,” Frenel explained. “It shows on the print I give you.”
Tax experts say some of these stimulus payments were deposited into those deleted accounts and the banks will not process them.
“The IRS issued the stimulus payments to the banks, however, they didn’t provide the link until then,” said Ericka Williams, professor of taxation at Florida A&M University. “The link was provided on the day of the disbursements and then all the confusion came because they didn’t give the taxpayers enough time to provide the information so they could get their stimulus check through other means. . “
Tax experts now say many of those clients will have to wait for the IRS to send checks in the mail or enter new account information online.
All of this takes time, so companies like Galaxy require patience.
“Everything I need them to understand because this situation, we are also in it with them,” said Frenel. “We take care of them. My clients are my friends. We know them, we talk, they call me. We like them, we eat together. So no we have no interest in stabbing them and getting the money back. I need it too, everyone needs it.
Tax experts say this is a new process for everyone and they will continue to work despite communication issues.
Galaxy Tax says anyone with questions can call them.
WCTV contacted the IRS on Thursday, but had no response.